James: Hello and good afternoon. Many thanks for taking the time to join us on today’s call and webcast for theScore’s Fiscal 2018 Q3 results. I’m James Bigg, theScore’s Senior Manager of Communications. On the call today will be theScore Founder and CEO John Levy and President and Chief Operating Officer Benjie Levy. At this time, I would like to caution our listeners that this presentation contains forward-looking statements. There are risks that actual results could differ materially from what is discussed and that certain material factors or assumptions are applied in making these forward-looking statements. Any forward-looking statements contained in this presentation represent the views of management and are presented for the purpose of assisting theScore shareholders and analysts in understanding the theScore’s financial position, objectives and priorities and anticipated financial performance. Forward-looking statements may not be appropriate for other purposes. Additional information on items of note, theScore’s reported results and factors and assumptions related to forward-looking information, are all available in our Annual Information Form and our MD&A for Q3 F2018, which was filed on SEDAR this afternoon. With that, let me turn the presentation over to John.
Q3 Highlights John: Good afternoon everyone. Thanks for joining us today for this review of the third quarter of fiscal 2018. It’s been an exciting period for theScore, for a number of reasons, including:
The continued growth of our app user numbers on iOS platforms, up 9% year-over-year, coupled with a new record for revenue generated in Q3. The launch of theScore on Bixby Home - an initiative that introduces theScore to an exciting new Android audience on Samsung devices across the United States. The legalization of sports betting in the United States, which presents its own exciting opportunities for our business. And a record month in terms of reaching sports fans through our social channels and emerging platforms, reinforcing our position as a leader in digital sports content creation and distribution.
More on that shortly. But first a look at revenue, which produced our best Q3 results ever. Revenue for the quarter grew to $7.2 million compared to $6.4 million in the same period in F2017. Revenue for the first nine months of F2018 grew to $22.6 million compared to $21.6 million for the same period in F2017.
This growth was accomplished thanks to continued strong performances by our Canadian direct sales team and our US programmatic business.
EBITDA loss for Q3 improved to $44 thousand, versus a loss of $2.2 million for the same period the previous year.
Just as last quarter, users on theScore app for iOS were up 9% year-over-year. This has been a very positive ongoing trend in Fiscal 2018, with the work put into our redesign during the last fiscal paying off. This growth was offset by our Android audience, and resulted in cross-platform average monthly active users of 3.9 million for Q3 - consistent with last year.
As previously discussed, we are engaged in a number of Android-specific growth initiatives to address this challenge, one of which we announced last week when we launched theScore on Bixby Home.
This will see theScore’s news and data content served-up to users on Samsung Galaxy devices - including their flagship S9 and S9+ devices - across the United States. Users can access theScore’s content by swiping through to Bixby Home, the name of Samsung’s personal assistant, providing a taste of our great content and also a portal directly to our platforms.
This is one of a number of initiatives we are undertaking on the marketing and product side to grow our Android audience and support the great results we’ve seen on iOS.
Before I turn things over to Benjie to look at some of our other product, social, and emerging platform initiatives in greater detail, I want to also touch on the legalization of sports betting in the United States.
As we said at the time, the Supreme Court’s decision to repeal PASPA and open the way for legalized sports betting was a victory for sports fans in the United States. We had been excitedly anticipating this ruling for some time and, in our opinion, it made total sense.
Sports betting has long been part of theScore’s DNA. From running the odds on our ticker back in our television days, to the in-depth raft of sports betting-related features and content we deliver in our app today. This has naturally attracted a strong audience of sports bettors to our platforms.
Clearly, this is a potentially large opportunity for us and we believe we are uniquely positioned to capitalize. Not only to we have industry leading expertise in creating exceptional mobile sports experiences, we also have a very large, and highly-engaged, audience.
But it’s important to stress that the state-by-state roll-out of sports betting, and the different models being explored within each individual state, means the landscape remains a fluid one. There is still much to be worked out by state legislators as to what successful sports betting regulation looks like. And companies like ourselves need to navigate this situation carefully and strategically.
We are highly excited by this opportunity and we look forward to sharing our plans with you in due course.
I’ll now turn things over to Benjie, who’ll take a closer look at some of our product initiatives, as well as our financials.
Benjie: Thanks John. And good afternoon everyone.
Product development on our sports app was largely dominated by preparing for the start of the World Cup. As part of this, we conducted a thorough overhaul of our soccer sections, delivering a greater depth of stats while also ensuring we were presenting information in the best way possible.
We also added World Cup-specific onboarding for the app to improve discovery of our content and encourage users to follow the countries that mattered to them. In the first week of the tournament alone, this approach helped us drive almost 1.2 million users to our World Cup content.
On top of this, we also worked on improving the format of our hugely powerful and popular alerts, building out rich media notifications that allow us to include more information and images into breaking news alerts. Our open rate for breaking news notifications has never been higher, which is testament to the great content being produced as well as the personalization options in our app.
Onto esports, and our video content continues to draw larger audiences. Just a few weeks ago we surpassed 300 thousands subscribers on your YouTube channel, with total video views across all platforms for Q3 exceeding 22 million, growth of more than 60% year-over-year. Our team continues to uncover successful video formats and franchises that engage fans of competitive gaming across the world, and we’re very pleased with the growth here.
It was also a stellar quarter for our social content. May was actually a new record for sports fans reached across our social channels, with our content hitting more than 50 million users across Instagram and Facebook as our team nailed its on-the-ground coverage of the NBA Finals, with our game four coverage producing a new record of 3.1M impressions for our Instagram stories. On top of this our team also created host of original content. This included our viral ‘Bron Pablo’ video series, which became our most viewed ever social video series and further served to expand our brand footprint. This reach, coupled with our hugely engaged and large app audience, truly reinforces theScore’s position as a leader in digital sports media.
Like our app, our emerging platforms team was also largely focused on the World Cup. We added World Cup contests to our Instant Game, localising contests into languages including French, Portuguese and Spanish to take advantage of our global audience. World Cup contests are currently among the most successful on that platform for us, showcasing the popularity of soccer among our non-North American audience. Localization was also a priority for our bot for Facebook Messenger, with World Cup content also proving to be a big draw. Our emerging platforms team is doing a great job of developing for these areas with high growth potential, while also expanding theScore’s footprint beyond our core North American audience.
I’ll now take a closer look at our financials.
Q3 2018 revenue, compared to Q3 2017 revenue, was $7.2 million vs. $6.4 million, with the increase being driven by our Canadian Direct Sales and US programmatic business.
In Q3 2018, expenses improved to $7.2 million from $7.8 million in the prior year. The reduction is mainly driven by lower marketing costs which have been found as a result of lower spend on marketing our esports platform where our video has been on a strong organic growth trend, as well as the promotional contest we ran in Q3 of last year which was not repeated in the current fiscal. EBITDA loss for Q3 2018 improved to $44K versus an EBITDA loss of $2.2 million in Q3 F2017. EBITDA loss for the three and nine months ended May 31, 2017 included an impairment loss on the disposal of a non-core investment of $0.8 million.
We finished the quarter with cash of $7.9 million. Cash generated for the quarter was $37 thousand versus cash generation of $3.6 million in Q3 2017. In Q3 2017 we received $5.2 million in digital media tax credits.
James: That concludes the formal part of our presentation. Operator, we will now take questions.
After Questions James: Thank you everyone for joining our Q3 conference call. We look forward to presenting to you again when we deliver our Q4 and year-end results in mid-October.
theScore's Q3 F2018 Conference Call Presentation
JULY 11, 2018
Forward looking statements
All statements other than statements of historical facts included in this
presentation may constitute forward-looking information and are based on
the best estimates of Management of the current operating environment.
These forward-looking statements are related to, but not limited to,
theScore’s operations, anticipated financial performance, business
prospects and strategies. Forward looking information typically contains
statements with words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘expect’’, ‘‘plan’’,
‘‘estimate’’, ‘intend’’, ‘‘will’’, ‘‘may’’, ‘‘should’’ or similar words suggesting
future outcomes. These statements reflect current assumptions and
expectations regarding future events and operating performance as of the
date of May 31, 2018.
Q3 F2018 Overview
•Continued growth of theScore app users on iOS, up 9% year-over-year, plus a new revenue
record for Q3.
•Launch of theScore on Bixby, introducing our offering to a new Android audience in the
•The legalization of sports betting in the United States.
•Breaking new records for reach on our social channels.
Q3 F2018 Overview
• Strongest ever revenue in company history for Q3.
• Revenue grew to $7.2M from $6.4M for the same period in the previous year. Revenue for
the first nine months of F2018 was $22.6M versus $21.6M for the same period in the
o Q3 F2018 revenue growth driven by strong performances from Canadian direct and
US programmatic sales.
• EBITDA loss improved to $44K versus a loss of $2.2M for the same period the previous
Q3 F2015 Q3 F2016 Q3 F2017 Q3 F2018
Q3 F2018 Overview
•Users of theScore’s flagship app on iOS were up 9% year-over-year.
• A positive trend in F2018, with users continuing to respond well to our redesign.
•Total average monthly active user total of 3.9M for Q3 F2018, consistent with the prior year.
•Engaged in a number of Android-specific growth initiatives, including the launch of
theScore on Samsung’s Bixby Home service.
• Data and content served-up to users on Samsung Galaxy devices, including
flagship S9 and S9+ devices, across the United States.
• Professional and Amateur Sports
Protection Act ruled unconstitutional by
Supreme Court, opening the way for
legalized sports betting across the
• theScore is positioned to capitalize
through our industry leading mobile
sports expertise PLUS our large and
• State-by-state roll out of sports betting,
plus the different models being
explored within each state, means
landscape remains fluid.
Q3 F2018 Overview
• Product development of
sports team dominated by
preparations for coverage of
World Cup 2018.
• In first week of
tournament, almost 1.2
million users touched
our World Cup
• Improved our already
powerful and popular alerts
with ‘Rich Media
• Allows us to deliver
more information and
include images in
• Video content continues to show positive growth.
• Total video views for Q3 F2018 surpassed 22 million, growth of more than 60% YoY.
• Surpassed 300K subscribers on our YouTube channel.
• Continue to uncover successful video franchises and formats that engages competitive
• May set new record for sports fans
reached across our social channels.
• Content hit more than 50 million
users across Instagram and
• Record numbers achieved thanks to our
on-the-ground coverage of the NBA
• Game 4 coverage produced new
record of 3.1 million impressions
for Instagram stories.
• Huge reach of our content continues to
reinforce our position as a leader in
digital sports media.
• Emerging Platforms team largely
focused on World Cup coverage.
• Added World Cup contests to our
Instant Game for Facebook
• Localized into French,
Portuguese, and Spanish to
• theScore Bot for Facebook
Messenger also localized into
French, Portuguese, and Spanish.
• Team continues to be successful in
developing for platforms with high
growth potential while expanding our
brand footprint beyond North
• Q3 revenue of $7.2 million versus $6.4 million in prior year.
•Growth driven by strong performances in Canadian direct sales and US programmatic.
• Expenses in Q3 F2018 improved to $7.2 million from $7.8 million for the
•Reduction driven by lower marketing costs, particularly in area of esports, as well as a
promotional contest that took place in prior year.
• EBITDA loss improved to $44K versus a loss of $2.2M in Q3 F2017.
•Continue to make strong YoY improvements to our EBITDA results.
•Q3 F2018 EBITDA included impairment loss of $0.8M on sale of non-core asset.
$ (44) $ (2,246)
Q3 F2018 Q3 F2017
Fiscal Year: September 1 – August 31
Financials – Q3 F2018
• Finished Q3 F2018 with $7.9 million in the bank.
• Cash generated for the quarter was $37K versus cash generation of $3.6 million
for the same period last year, when we received $5.2 million in digital media tax
• Cash-flow positive for Q3 largely as a result of continued improvements in
operating performance and positive changes to working capital.
Working Capital $ 12,417
Feb 28, 2018 May 31, 2018
Fiscal Year: September 1 – August 31
Financials – Q3 F2018